A U.S. bank regulator told banks to pause dabbling directly in crypto in 2022 and 2023, but did not order them to stop providing banking services to crypto companies contrary to industry complaints of widespread “debanking,” according to documents released on Friday.
A judge ordered the Federal Deposit Insurance Corporation to provide versions of supervisory “pause letters”, opens new tab it sent to unidentified banks after History Associates Incorporated, a research firm hired by crypto exchange Coinbase (COIN.O), opens new tab, sued the agency to release them.
The FDIC first released the letters in December but was ordered by the judge to resubmit them with more “nuanced redactions.” The new batch of 25 letters includes two additional letters sent to unidentified banks that were not included in the original FDIC submission.
The litigation is part of a campaign by Coinbase to expose what it and other crypto companies say has been a concerted effort on the part of U.S. bank supervisors to choke off crypto companies from the traditional financial system.
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